Hi Aditya,
Database.AllowCallouts are used to allow Callouts in batch Apex, “Callouts include HTTP requests as well as methods defined with the web service keyword”. To use a callout in batch Apex, specify Database.AllowsCallouts in the class definition. For example:
global class SearchAndReplace implements Database.Batchable<sObject>, Database.AllowsCallouts{
}
For further details refer to this link :
https://www.salesforce.com/us/developer/docs/apexcode/Content/apex_batch_interface.html